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How will an increase in the world price of crude oil influence the economy of an oil-importing country such as the United States traditionally was?
How will an increase in the world price of crude oil influence the economy of an oil-importing country such as the United States traditionally was?
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a. Aggregate supply will decrease, leading to a decrease in real GDP.
b. Aggregate supply will increase, leading to an increase in prices and smaller GDP.
c. A change in the price of an imported good will not affect the domestic economy of an oil-importing country.
d. Aggregate supply will increase, leading to an increase in real GDP.
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